Reuters: Technology News: Shutterfly sues to shut down Kodak photo app

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Shutterfly sues to shut down Kodak photo app Mar 22nd 2013, 18:32 Tweet Share this Email Print Related News Judge OKs Hostess's Twinkies, Ding Dongs sale Tue, Mar 19 2013 Insight: On Facebook, app makers face a treacherous path Mon, Mar 11 2013 Courts take novel approach to Nortel Networks cash fight Fri, Mar 8 2013 Facebook puts focus on photos in new look; may boost ads Thu, Mar 7 2013 Facebook hit with fresh IPO-related lawsuit Mon, Mar 4 2013 Analysis & Opinion Keep terrorism trials in U.S. courts The Kodak logo is seen at the now mostly unused Kodak factory in Rochester, New York, January 1, 2013. Credit: Reuters/Carlo Allegri Fri Mar 22, 2013 2:32pm EDT (Reuters) - Photo service Shutterfly Inc has sued to shut down an Eastman Kodak Co app that lets users purchase photo albums made from pictures stored on Facebook Inc's social media network, according to court documents. Shutterfly bought the Kodak Gallery online photo business for $23.8 million last year, and as part of the deal Kodak agreed not to set up a duplicate business, according to court documents. Shutterfly said in a complaint filed on Friday with the U.S. Bankruptcy Court in Manhattan that the "My Kodak Moments App" violates the sale agreement by setting up a competing business. The app allows users to choose photos on Facebook to create an album which is then printed and sent to the consumer. The complaint also alleged it is powered by the same technology that powered the business that Shutterfly purchased. A Kodak spokesman did not immediately respond to a request for comment. Kodak filed for bankruptcy early last year. It said on Friday it had closed on its $848 million finance package that helps prepare it to exit bankruptcy in the middle of this year. The company plans to focus on its commercial imaging business after it reorganizes. The case is In re: Eastman Kodak Co et al, U.S. Bankruptcy Court, Southern District of New York, No. 12-10202. (Reporting by Tom Hals in Wilmington, Delaware; Editing by Carol Bishopric) Related Quotes and News Company Price Related News Tweet this Link this Share this Digg this Email Reprints We welcome comments that advance the story through relevant opinion, anecdotes, links and data. If you see a comment that you believe is irrelevant or inappropriate, you can flag it to our editors by using the report abuse links. Views expressed in the comments do not represent those of Reuters. For more information on our comment policy, see http://blogs.reuters.com/fulldisclosure/2010/09/27/toward-a-more-thoughtful-conversation-on-stories/ Comments (0) Be the first to comment on reuters.com. Add yours using the box above.

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